The Payment Protection Insurance (PPI) scandal that has loomed over the UK banking sector continues to do so, with Santander the latest to put aside further funds for repayments. In this instance, the bank has added another £450 million to compensate customers that were mis-sold.
This is the first time that the Spanish bank has topped up in this area in a year, but this latest figure coincides with an announcement from the Royal Bank of Scotland that they are placing a further £500m into their own PPI compensation fund.
This instalment from Santander is expected to be the bank’s final one. The sum caused the UK Santander group to run at a loss in the fourth quarter of £82m. In 2015, the UK arm of Santander actually had a slight loss of profits from £1.4bn to £1.3bn because of the PPI charge. It also had repercussions for the larger Santander group, however the group’s total profits increased by 3% to almost €6bn (£4.5bn).
In total, Santander has now put £1.5bn into its PPI provisions. However, this number is less than rival banking groups. In particular Lloyds, who have had to set aside over £13bn. In line with this, there has been much speculation that Santander are considering buying hundreds of RBS branches, with the bank obliged to sell in order to meet requirements set by the EU after its bailout in 2008 by the taxpayer.
The Financial Conduct Authority (FCA) has now entered a consultation period, wherein they are considering the proposed 2018 deadline for PPI claims. This is as well as deliberating over how to handle any breaches of the Consumer Credit Act that potentially took place during some of the sales process.
If you think you were mis-sold PPI it’s still not too late to get a claim in today. If you have any queries or questions, we’d be happy to answer them. To contact us you can call us either on Freephone: 0800 6127958 or by email on :firstname.lastname@example.org. We make the process as simple as possible and will act on your behalf on a no win no fee basis.